By Cody Thomas, Esq., Manager and Counsel, AIA Contract Documents
August 31, 2022
Mechanic’s liens are powerful legal tools that construction professionals can use to ensure payment for the work they perform. However, the process for filing a lien is intricate, and failing to comply with state-specific requirements can jeopardize your ability to enforce your lien rights. This guide outlines the key steps for filing and enforcing a lien, ensuring that you protect your payment rights effectively and within the legal framework of your state.
The first step in filing a mechanic’s lien is to review your state’s specific notice requirements. Different states have distinct rules about who needs to be notified, the timing of notifications, and the content of those notifications. Failing to meet these requirements could invalidate your lien, making it crucial to carefully follow your state’s procedures.
Every state has its own deadlines for filing a lien. Missing these deadlines can result in the forfeiture of your lien rights. For example:
It’s vital to note these deadlines and ensure that you are in compliance. A missed deadline is often irreversible, so set reminders and act promptly.
A mechanic’s lien attaches to the property where the work was performed. To ensure that the lien is valid, you must confirm the legal owner of the property and obtain its legal description. If the property is leased, the lien may only apply to the tenant’s interest in the property.
Once you’ve gathered the necessary information about the property, you will need to prepare the lien document. The specific content required varies by state but typically includes:
In most cases, you can find state-provided lien forms that streamline this process. However, it is essential to double-check that the form complies with your state’s specific requirements.
Next, you must file the lien in the correct county office. This is typically the county’s property recorder’s office or the clerk of the court in the jurisdiction where the property is located. Be mindful of situations where property lines span multiple counties.
In some cases, additional documents like affidavits or supporting materials must be submitted along with the lien. Consult your state’s guidelines to ensure you’ve completed all necessary steps.
After filing the lien, most states require you to notify all parties affected by the lien, including the property owner and other lienholders. This step is critical to ensure that your lien is enforceable.
Each state has its own regulations regarding mechanic’s liens. These requirements can differ in terms of deadlines, notice requirements, and filing procedures. Familiarizing yourself with your state’s lien laws is crucial to avoid common pitfalls.
When filing a lien, it is crucial to understand potential risks, such as inadvertently waiving your lien rights. Ensure you do not enter into agreements that waive these rights unless you have been paid in full for your work.
Each state has its own requirements for providing notice and deadlines for filing a lien. Missing these crucial steps can undermine the validity of your lien. Keep track of the exact dates and ensure you meet all deadlines.
The AIA Contract Documents program has developed a limited number of Sworn Construction Statements, and Lien Waiver and Release forms that might be used in specific states. In addition, we have also developed generic versions of those documents that might be used in the remaining states. To learn more, visit Important Considerations for Sworn Construction Statements and Lien Waiver and Release Forms or watch a short video AIA Contract Documents New Sworn Construction Statement and Lien Waiver and Release Forms.
Several states regulate Lien Waiver and Release forms and require that a specific form be used on projects in that state. Depending on the jurisdiction of your project, governing law may require specific content and formatting within these documents. If your project is located in the states listed below, consider using an AIA Contract Documents state-specific form. It is important to consult with an attorney to determine which form is suitable for your needs.
Protecting your lien rights is essential for contractors seeking to secure payment for work performed on a construction project. By understanding the legal framework, following the necessary steps, and avoiding common mistakes, you can ensure that your lien is enforceable and your rights are protected. Always consult with a lien law attorney to navigate state-specific rules and ensure compliance with all legal requirements.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.